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Beyond Traditional Wage Premium. An Analysis of Wage Greenium in Latin America

Author

Listed:
  • Manuela Cerimelo

    (CEDLAS-IIE-FCE-UNLP)

  • Pablo de la Vega

    (IIE-FCE-UNLP)

  • Natalia Porto

    (IIE-FCE-UNLP)

  • Franco Vazquez

    (IIE-FCE-UNLP)

Abstract

This paper estimates wage differentials between green and non-green jobs (wage greenium) in nine major Latin American countries (Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Uruguay), which account for 81% of the region’s GDP. We contribute to the recent literature highlighting a positive wage gap for those working in green jobs in developed countries. A positive wage gap for green jobs may be a virtuous market feature, as it means that in the future workers might be encouraged to switch to greener occupations. To do so, we define green jobs as those occupations with high greenness scores using the occupational approach as in Vona et al. (2018), Vona (2021) and de la Vega et al. (2024). Our results suggest that the wage greenium for the period 2012-2019 in Latin America was between 18% to 22%. Moreover, this wage gap has remained relatively stable over the years.

Suggested Citation

  • Manuela Cerimelo & Pablo de la Vega & Natalia Porto & Franco Vazquez, 2024. "Beyond Traditional Wage Premium. An Analysis of Wage Greenium in Latin America," CEDLAS, Working Papers 0325, CEDLAS, Universidad Nacional de La Plata.
    • Handle: RePEc:dls:wpaper:0325
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    Cited by:

    1. Andrés García-Suaza & Carlos Sepúlveda-Rico & Pamela Caiza-Guamán, 2025. "Understanding labor market transitions in the Green Economy: A synthetic panel approach for Colombia," Documentos de Trabajo 022159, Universidad del Rosario.
    2. Zarrilli Joaquín & Porto Natalia & De la Vega Pablo & García Carolina Inés, 2025. "Towards a twin transition in tourism in Latin America," Asociación Argentina de Economía Política: Working Papers 4846, Asociación Argentina de Economía Política.

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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